The role of intra-firm trade

Abstract

The paper analyses "intra-firm" trade in manufacturing, that is, the estimated one-third of world trade in manufactures which is transacted between affiliated parties. As firms realize the increasing potential for integrating their operations throughout the world, they are contributing to significant shifts in the patterns of international trade and industrial development. As can be seen from the material presented here, a substantial and growing part of international trade is internalized through the MNEs.

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